JPMorgan released its research report reiterating its view on its 2Q25 outlook, and expecting the MSCI China Index to fluctuate in the 70-80 range in the near term, with upside potential in 2H25.

The near-term risk factors are weak summer seasonality, tariff uncertainties on corporate 2Q25 results, volatility in US-China talks and the possibility of no additional stimulus in late July in mainland China.

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In terms of sector weights, JPMorgan re-categorized IT at Overweight after the May-June pause, and continued to rate communication services, discretionary, healthcare and materials at Overweight, as well as keeping rating at Underweight on energy and utilities.

The broker's top picks for Chinese stocks in 2H25 include TENCENT (00700.HK)  -1.500 (-0.298%)    Short selling $328.31M; Ratio 3.588%   , Tencent Music Entertainment Group(TME.US)      , Alibaba Group (BABA.US)      , TAL Education(TAL.US)      , MGM CHINA (02282.HK)  +0.660 (+5.124%)    Short selling $33.14M; Ratio 8.277%   , Futu (FUTU.US)      , HTSC (06886.HK)  -0.380 (-2.390%)    Short selling $22.46M; Ratio 16.521%   , INNOVENT BIO (01801.HK)  +0.900 (+1.148%)    Short selling $436.85M; Ratio 18.510%   , AKESO (09926.HK)  +0.850 (+0.924%)    Short selling $99.81M; Ratio 11.029%   , CATL (03750.HK)  +5.400 (+1.640%)    Short selling $192.65M; Ratio 17.879%   and ZHONGJI INNOLIGHT(300308.SZ)  -6.370 (-4.384%)   .
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